Town Deal Funding: Owens in Hastings

Moving forward, it is vital that the same mistakes are not made. Under this Labour Government, we have a brilliant opportunity to breathe life back into our high streets, sort out our empty units and get our local economy moving. I am really grateful to the Minister for the Labour Government’s confirmation that Hastings will be one of the 75 towns awarded £20 million in funding toward those aims over the next decade. The Government have rightly said that that money should be spent on the priorities of our community, whether that is broken pavements, broken bus shelters, or opening up important community venues such as St Mary in the Castle. I will be publicly asking my constituents how they think that money should be spent, and putting on pressure for us to spend it properly. The Labour Government are also giving our communities important new powers, such as high street rental auctions. These will give local leaders the power to take action on properties that have been left vacant for over a year, granting local businesses and community groups the right to rent empty commercial lots at market price.

Lastly, I put on record my thanks to the journalists involved in exposing this scandal. It is only because of the work of journalists at local publications such as the Hastings Independent Press, as well as at The Guardian, that we know what has gone on. Never again should taxpayers’ money be wasted in this way. For that reason, I am also referring the case of Owens to the National Audit Office, and I ask it to investigate. The lessons from Owens must be learned.

I hear the concerns of my hon. Friend and her constituents loud and clear regarding her constituents rightfully getting their money back. Although the funding comes from the UK Government, the responsibility for local town board management sits with the town board and formally with Hastings borough council as the accountable body for the town deal. I understand that Hastings borough council issued legal letters last year regarding potential action to recover the £150,000 from the towns fund that was allocated to CFEC Ltd, which ran Owens entertainment centre during this time.

I will be direct, as my hon. Friend was direct, and say that there are plenty of unanswered questions. What we do know is that the Conservatives, when they were in government, received £2 million in donations from its owner. We also know that under their watch, this now-closed amusement centre received more than £150,000 of taxpayers’ money. The simple question we do not yet know the answer to is: why? Why might this millionaire Tory donor have needed a top-up from the taxpayer to open a bowling alley? There are concession owners in the dark, ticket holders confused and, importantly, 31 staff members without a job. I am sure they would like to know the answer to that question, too. I am also sure they would like to know whether the Conservatives, given what has now come to light, have any intentions, for the benefit of the local community, of returning all or part of the donations that they received?

Following the news that CFEC Ltd had gone into administration in October ‘24, a claim was lodged with the administrators to recover the £150,000. My officials will continue to stay up to date on the situation through our town deal monitoring and regular conversations with the council.

On town deals more widely, my hon. Friend the Member for Nottingham North and Kimberley (Alex Norris) was pleased to offer an extra year for delivery recently, taking the end of the fund to March 2027. We all want to see quick results, but colleagues in this House and in councils have reiterated how challenging it has been for projects, especially with cost inflation. This Government have listened, which is why there is now an extra year of funding to get those projects over the line. My officials are working with areas where the extra year is taken up to ensure that delivery stays on track.

Let us now look at the broader picture. The last Government tied places up in knots with their short-term initiatives and funding pots, all with very different rules and timetables. Far from driving growth, that bogs places down in bureaucracy, complexity and uncertainty. Moving ahead, we will set out a refreshed approach to local growth funding in the multi-year spending review in the spring—an approach that simplifies funding, with less red tape and more local choice. This Government’s defining mission is growth, and we are determined that nowhere will be left behind. Together, we will work in partnership with people on the ground and with local authorities in Hastings and in every corner of the country.